Bitcoin experienced significant volatility following the imposition of tariffs by U.S. President Donald Trump on key trade partners—China, Canada, and Mexico. The cryptocurrency opened the week at $91,231 but declined sharply after the announcement, triggering widespread market liquidations. According to CoinGlass, the drop led to $1.72 billion in liquidations across the crypto market, including $373 million in Bitcoin alone. Bybit CEO Ben Zhou suggested that the real total liquidation was likely between $8-10 billion, far exceeding reported estimates. However, market sentiment improved after Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau negotiated a 30-day postponement of the tariffs, allowing Bitcoin to recover and close above $101,300 on Monday. The rally was further fueled by Trump’s announcement of the first U.S. sovereign wealth fund, which sparked optimism about #Bitcoin’s potential inclusion in national reserves. However, the rebound was short-lived, as China’s finance ministry retaliated on Tuesday with tariffs on U.S. goods, including crude oil, agricultural equipment, and automobiles, in response to Trump’s 10% tax on Chinese imports. As a result, Bitcoin declined 3.5%, reflecting the broader uncertainty in global markets.
